TOPIC: GDP - a good price to go long?

This did bounce of support on friday and created a bullish engulfing pattern. Real strength will only come once it clears 11.30 down trend line. Look for a 123 low formation to form.
obviously penny share risks attached

This really has not done much in the last 6 years whilst gold was in a bull market, seems to be in a range from ~8p-17.5p.... what is there to say it will do much while gold looks like it may be starting a bear market ?

personally i see no edge in this at all at the moment, apologies dont know much abt the fundamentals and only go by what i see on the chart...that's enough for me tho... could be wrong.

Goldplat (LON:GDP) – Gold Recovery Going from Strength to Strength
• Goldplat is a dominant player in the gold recovery business with operations in South Africa and Ghana.
• The company intend to build on the success in these operations to build up further lines and hubs for gold recovery.
• The business offers stable margins with operating profits offering growth of around 14% over the next two years.
• The business is cash generative and can support a dividend initiated in FY 2012 and is seeking shareholder approval for a share buy back programme.
• The share price has been weak recently reflecting the disappointment with the gold production assets which are being restructured and where the company have realised losses of £450,000 in H1 2013.
• The company is valued on a sum of the parts value giving a target price of 20 pence and is well supported at a prospective PE of 5.4x and dividend yield of 5.5%.
Key Issues
• Strategic Focus on building up the Gold Recovery business where existing operations offer a long term sustainable growth profile.
• The operations are highly cash generative and can self fund growth of more Gold Recovery Lines and potential expansion of hubs.
• Gold production has been restructured and will now be a small part of overall group value.
• Cash generation should support the maiden dividend initiated in FY 2012 with a share buy back programme being proposed.
Valuation: We value Goldplat primarily on its recovery business with little value being assigned to the gold production business given recent management moves to restructure the business.
We value Goldplat on a sum of the parts basis – applying an EV/EBITDA multiple of 5x for the gold recovery business which on a projected EBITDA of £5.6m puts a valuation on recovery of £28m – this accounts for 80% of the value of the business.
The Gold Production downgraded to a £2.5m value for Kilimapesa, other exploration at £1.4m and net cash estimated to be £4.6m at year end.
The shares trade on a prospective PE of 6.4x coming down to 5.4x for FY 2014 – we expect the dividend to be maintained giving a yield of 5.5%.
Addendum: Please note that with the PE for FY 2014 should be 4.2x with an EV/EBITDA of 3.2x on a share price of 10.12 pence.www.proactiveinvestors.co.uk/columns/sp-...opavlovsk-12342.html

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